Allianz Cornhill said that drivers had given positive feedback on the use of recycled parts in repairing vehicles.
Since October 2006 policyholders have been invited to use recycled parts to repair their vehicles and in turn Allianz has looked at whether the scheme could help to reduce claim costs.
Take up of the offer to use recycled parts was around 25%
Allianz said that policyholders who took part in the scheme gave positive feedback and the safety of vehicles was not compromised.
Dan loosely, Allianz Cornhill motor damage claims manager, said that the project proved that recycled parts can be cost effective for the repairer and the insurer. Adding that for a £1,000 claim, on average £240 was saved by using recycled parts.
